Keeping Cash on Hand During Chapter 7 Bankruptcy
There are exemptions available in
Chapter 7 bankruptcy
that may help protect your cash. Although the cash in question has to
qualify as an exempt asset. It’s common for consumers to be afraid
of filing in fear of losing cash assets. The good news is you may be able
to retain your cash and other assets of value upon learning which
provides adequate protection.
Bankruptcy exemptions vary depending on guidelines set by the state. There
are also exemptions at the federal level, and in some cases, you may be
able to utilize both types to provide full protection, since some exemptions
may only offer a certain amount of coverage.
Cash assets that can be protected in Chapter 7 include public assistance
funds, unemployment benefits, cash in bank accounts, and even proceeds
from Social Security. Bank account funds of a married couple may qualify
for protection if one spouse is filing for protection with the other spouse
not being liable for debt owed included in the filing. Proceeds from a
personal injury case may also qualify for protection.
In some cases, cash from a sale of personal property may not qualify depending
on when the asset was sold. For instance, if you sell your vehicle before
you file, the proceeds may not be considered an exempt asset. Meaning,
if you have an asset or personal property that may qualify for an exemption
before you file, but instead you sold the item and received cash, the
cash from the sale may not be considered exempt. As always you should
discuss your situation with an experienced bankruptcy expert in Dallas-Fort Worth.